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Is Your Wallet Ready to Do Its Part for the Enviroment?

Gas prices could keep rising with ethanol

auto warrantyStarting in May, refiners will start including more ethanol and less methyltertiary-butyl ether in gasoline.  MTBE had been used as a common additive to gas for quite some time but will now be phased out in favor of the cleaner burning ethanol. 

This is good news for the environment, as MTBE can cause environmental problems and could possibly be a carcinogen.  However, more than likely it will help gas prices to keep rising.  Because of the new demand for ethanol, its price has been steadily rising meanwhile MTBE is down.  

According to Platts, the New York Harbor spot price for ethanol is about $2.60 per gallon, up from about $2.30 at the beginning of the year, while methyl tertiary-butyl ether (MTBE), the gasoline additive that ethanol will replace because of its pollutant qualities, is $1.60, down from $1.91 in January.

As well as the price being affected by the demand for ethanol, this “new gas” won’t bring you as many miles per gallon.  The ethanol is not as powerful as the MTBE additive.

So, get ready to do your part for the environment.  It’d be easier if it just weren’t so expensive…

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Posted on Monday, April 10th, 2006 at 5:47 am In Auto Warranty  


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